IMF revises Zim’s growth forecasts upwards

Malcom Sharara

Harare – The International Monetary Fund (IMF) has revised Zimbabwe’s growth forecasts upwards, saying the new growth projections are anchored by the agricultural and mining sectors.

In its October 2017 World Economic Outlook, entitled Seeking Sustainable Growth – Short-Term Recovery, Long Term Challenges, the IMF said Zimbabwe’s economy is now expected to grow by 2.8% – up from earlier projections of 2%.

The IMF’s growth projections are however still below what the Zimbabwean government expects to achieve this year.

In March this year, Zimbabwe revised its 2017 GDP growth rate to 3.7% from 1.7% on the back of an expected bumper maize harvest.

Former finance and economic development minister Patrick Chinamasa said at the time that the revision in growth projections was on the back of prospects of a bumper harvest this farming season.

“This good harvest, anchored on Command Agriculture expected this year, would spur economic growth,” said Chinamasa. More than 1.1 million metric tonnes have since been delivered to the Grain Marketing Board, which is mandated to buy all maize output from farmers and is paying $390 per tonne.

The IMF is however forecasting the country’s growth prospects to go down in coming years.

“Zimbabwe’s medium-term growth is expected to recede, and is projected to decline to 0.8% next year and a negative 0.9% come 2022.”

Inflation is expected to rise and close the year at 7% this year, and 9.5% next year.